Binance Users Withdraw $3.6bn After Record $6.3bn Crypto Hack

Binance customers pulled a net $3.64bn from the exchange after it reopened on Sunday following a record cyber-attack that drained $6.3bn of digital assets. The move comes after the platform suspended all transactions in the wake of the breach, which has been described as the largest hack in cryptocurrency history.

Between 06:00 and 15:30 GMT on November 1, Binance processed $4.649bn in withdrawals and $1.01bn in deposits, leaving a net outflow of approximately $3.64bn. The exchange noted an initial spike in withdrawals that has since declined and is stabilising. More than two dozen major cryptocurrencies, including Bitcoin and Ethereum, have resumed withdrawals, and Binance said additional services will return in phases once security checks are complete.

Binance has said it has covered roughly 95 per cent of the assets stolen in the breach, with the remaining amount expected to take longer to recover. The company has repeatedly pledged to cover all losses linked to the attack. In 2024, Binance reported holding more than $160bn in assets in its custody and has reserved over $6.34bn to address the fallout. The exchange replaced customers’ assets using a mix of its corporate treasury, futures insurance, and emergency reserve funds.

The FBI and other authorities have blamed North Korea for the cyber-attack, identifying the group TraderTraitor, also known as the Lazarus Group, as the likely culprit. The FBI released a list of cryptocurrency wallet addresses linked to the group and urged industry partners to block transactions involving them. The hack targeted Binance’s global centralised exchange, Binance.com, while its US-facing platform reportedly remained unaffected.

Early investigations suggest the incident began with a compromised laptop belonging to an engineer, which allowed hackers to discover a way to initiate unauthorised transactions. Binance has urged other issuers to freeze affected assets and has worked to restore normal operations while conducting extensive security reviews.

For founders and operators, the incident underscores the importance of robust security protocols, especially in high-volume exchanges. The rapid withdrawal of billions of dollars demonstrates how quickly confidence can erode when a platform’s safeguards fail. Investors will likely scrutinise the resilience of custodial services and the adequacy of insurance and reserve mechanisms.

Looking ahead, Binance plans to resume additional services in a phased approach, pending the completion of security checks. The exchange’s commitment to fully cover the financial impact of the stolen funds may reassure users, but the incident will likely prompt regulators to tighten oversight of digital asset platforms. The broader crypto market will watch closely to see whether other exchanges adopt similar safeguards and whether the industry moves toward greater decentralisation to mitigate single-point failures. The Binance hack serves as a stark reminder that even the largest and most established platforms remain vulnerable to sophisticated state-backed actors.